Correlation Between Barings BDC and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Barings BDC and CAVA Group, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Barings BDC and CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and CAVA Group,, you can compare the effects of market volatilities on Barings BDC and CAVA Group, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Barings BDC with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and CAVA Group,.
Diversification Opportunities for Barings BDC and CAVA Group,
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barings and CAVA is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Barings BDC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Barings BDC are associated (or correlated) with CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Barings BDC i.e., Barings BDC and CAVA Group, go up and down completely randomly.
Pair Corralation between Barings BDC and CAVA Group,
Given the investment horizon of 90 days Barings BDC is expected to generate 0.4 times more return on investment than CAVA Group,. However, Barings BDC is 2.52 times less risky than CAVA Group,. It trades about 0.45 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.13 per unit of risk. If you would invest 941.00 in Barings BDC on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Barings BDC or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings BDC vs. CAVA Group,
Performance |
| Timeline |
| Barings BDC |
| CAVA Group, |
Barings BDC and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and CAVA Group,
The main advantage of trading using opposite Barings BDC and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, CAVA Group, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
| CAVA Group, vs. Tencent Music Entertainment | CAVA Group, vs. Asbury Automotive Group | CAVA Group, vs. Stagwell | CAVA Group, vs. Fluent Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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